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I ... David Wessel ... Wall Street Journal with me here is John Hills unwrapped ... the minister in the paper that talks about the things that that is warning about ... other than the classics rate when inflation ... notes is that the Fed has been ... criticized for ... risking a big jump in inflation we haven't seen it ... they're starting to turn their attention to something else which everyone is to focus on which is the risk believe or not ... of another financial bubble ... no we're seeing some markets start to take off ... junk bonds and body in the junk bond market displaces Beazer was before the last financial crisis ... some ... odd looking loans in the corporate loan market there is no risk of lightning K Tata loans ... these are signs that were starting to see ... you real ... potential for off going after these markets and that is starting to ask ... is this a sign that doubt we could have some new financial bubble building up in it so ... what we do about it ... so ... it's the problem of repeating the date of the past decade ... well ... I mean ... that's one of the worries it's hard to believe that they would be thinking about this at this point that that should put a lot of new ... surveillance mechanisms in place that that the institutions change alot ... BCA get there and they've got a hand on the things that got a handle on financial bubbles ... but here we could be put to test me you tell me the institution ... that has changed ... so much from ... where was it and twenty years in on the way they thought oh well it actually turns thing about that the other day remember going to the Fed's Jackson Hole conference is where ... economist after Qantas would get up and lecture the Fed officials that ... you can't possibly know when there's a bubble so they don't know the end of the reason that Islam was Ben Rene and sell the ... capabilities of the kindest ... thing Greenspan strategy was caricature as ... mopping up but the bubble burst and then you can clean it up now ... there were people who would talk once in awhile about asset prices maybe we should worry about it yet but ... this is night and day and that's what I get some good footage claims this interesting so ... they say they learned their lesson that they can just allowed these things to develop and not do anything about it and wait until after the first that work for the tech bubble it didn't work for the housing bubble ... so they have a lot of people looking out for stuff but it's kind of like one of the analogies I use my stories the captain of the ship ... looking out on a cold sea for price Aaronson China distinguish them ... from up or just dig from big chunks of ice ... so they have surveillance going on but the big question I think that that is the right so what we do when we think we see in a story what can you actually see and what other choices I mean I suppose that could raise interest rates so low that seems low dangerous when the economy so weak that they they talked alot about these things called macro Prudential tool to allow them to ... avoid a crisis that they have in most of this or that this is this part of the debate that's going to take shape and I should say this is going to be taking gone would hurt the very early stages of this and that are not seeing a bubble that were at the very early stages ... but part of the debate is ... to use your regulatory tools already use interest rates ... so we know they can do things and I think that's probably the inclination of most people there ... to try their ... pullback on specific parts of the markets we might see the same problems I mean they they have some believer that as well so this on the call margin requirements if they think that people are borrowing too much against certain asset light mortgage back securities ... they can raise in markets like the repo market margin requirement for Bahrain and that ... so they have a lot of leaders that that's one thing that's changed is that over the last ten years is ... that so many leveraged right now that they think they could pull ... but a really big question is this frock that we see continues to develop and has a very busy at one of the question is do they keep pushing the monetary gas ... to the floor ... and in so here's a question and once you let me hear you put your odds on it ... did that does that then reach its goals of getting unemployment down to six and a half percent forecast the ... back ... I mean that's the question what I'd I think it's a huge dilemma I mean it was always the radical before but now we're facing that point the people that have long worried about ... unemployment is high ... inflation is low ... if they're beginning to talk about a bubble with people like you that their deftly worried about it either it's not there yet now at some point ... six nine twelve months from now did they say ... we have to put the brakes on the economy before back to full employment to avoid risking another calamity like poses the problem is they don't wanna put the brakes on the economy read the problem for the marinade missionaries and to put the brakes on the financial market before they want to put the brakes and economy cuz ... they clearly want to keep ... reading the economy is unemployment is so hot right so ... ten years ago if you are talking about these questions in the one who was the brain that the Fed was thinking about them ... Ben Rene Kyi with an idealist Alan Greenspan was the chairman of Bedford it was a governor ... so for the people we are listening to carefully now that it's so quite clearly burn Anqi is still a brand that has a sister I were to my mind that's true that's a good point there a lot of interesting characters there one person we talk to them restored to its ... Jeremy Stein he's a new governor he was a finance professor before he got caught that day ... and he's been talking about the stock is bringing some interesting ways of thinking that a one-year MIT must be ... a part of the MIT market ... there's another guy in Boston Eric Rosengren ... he's an interesting character he's he's a former supervisor ... very interested and financial stability its has been paying a lot of attention vulnerabilities and my markets ... he's also would up he wants the Fed to be pushing the gas to get the economy going ... but he's looking out for these things is really important in what he says ... and Bill Dudley another job another guy who wants to push ... the gas and the economy ... but has said before that there might be cases where the Fed has to use monetary policy ... to pull back the rains finally Esther George ... she's on top ... she doesn't believe in using low interest rates ... and she's out in the Midwest look into farmland prices going through the roof raising and when a ... lot of different voices has always been on the challenge for burn Anqi is balancing all these voices ... in China come up with the right answer to account for you is telling us the recent listen to ... it ... you can read more about John